AbbVie in Advanced Talks to Acquire Gilgamesh Pharmaceuticals for Up to $1 Billion, Bolstering Mental Health Pipeline

According to the Zhicheng Finance APP,According to informed sources, AbbVie (ABBV.US) is in talks to acquire Gilgamesh Pharmaceuticals, a company focused on mental health treatments.Informed sources stated that the potential deal could value the privately held Gilgamesh at approximately $1 billion. They noted that a related announcement might be made within the coming weeks. The sources added that negotiations are still ongoing, and the deal could still be delayed or ultimately fall apart.

If the acquisition is completed, it will be a further move following an option licensing agreement signed more than a year ago between AbbVie and Gilgamesh, under which both parties agreed to jointly develop novel therapies for the treatment of mental disorders.

It is reported that Gilgamesh is developing a new generation of psychedelic compounds called "neuroplastogens." Led by founder and CEO Jonathan Sporn, Gilgamesh focuses on developing therapies for treating depression, anxiety, drug addiction, and other mental illnesses. In May this year, the company announced positive preliminary results from an interim clinical trial for its candidate drug GM-2505, aimed at treating Major Depressive Disorder (MDD).

If the deal is successful, it will enhance AbbVie's pipeline of treatments for mental illness.Previously, AbbVie had acquired a drug for the treatment of schizophrenia, but the drug failed in a mid-stage clinical trial last year. AbbVie currently markets a drug called Vraylar, which is used to treat schizophrenia and bipolar disorder.

AbbVie's Potential Deal Highlights Growing M&A Interest in the Sector People familiar with the matter revealed that Atai Life Sciences (ATAI.US) is also working with an investment bank to explore early M&A interest from major industry players. The company recently acquired Beckley Psytech and reported positive results in a mid-stage trial for its psychedelic nasal spray, BPL-003.

Bloomberg Intelligence analyst Jean Rivera Irizarry pointed out that psychedelic drugs used to treat depression may see significant breakthroughs in the next two years, with key data from multiple late-stage pivotal trials set to be released. In an April report, he stated: “MindMed (MNMD.US), Cybin (CYBN.US), and Gilgamesh are leading this rapidly evolving field, aiming to serve a large but underserved patient population, with the market generally forecasting sales of approximately $4.5 billion in the sector by 2032.”